XFLT - Monitoring Our Funds' Distribution Sources: 'Business As Usual' Vs. More 'Heroic' Income

• Many readers have asked me which of our closed-end funds have the most stable distributions?
• Hard to predict on a fund-by-fund basis, as we've seen funds with distributions that seemed to be hanging by a thread that still haven't cut their payouts.
• That's why we diversify since lightning can strike - or not strike - almost everywhere, but we need to examine closely what the source of various funds' distributions are.
• "Business as usual" earnings are more dependable than income requiring more "heroic" achievement, like capital gains.
• "Managed distributions" that level off the peaks and valleys of a fund's current income by "borrowing" from the fund's future earnings, need to be watched especially closely in down-market periods.

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